What is the purpose of a tax return in Vietnam? What is the deadline for submitting the tax return for the third quarter of 2024?

What is the purpose of a tax return in Vietnam?

Pursuant to Article 3 of the Law on Tax Administration 2019, certain terms are defined as follows:

Definition of Terms

In this Law, the following terms are understood as follows:

1. Tax is a compulsory state budget payment by organizations, households, business households, and individuals as stipulated by tax laws.

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5. Tax code is a series of 10 or 13 digits along with other characters issued by the tax authority to the taxpayer for tax management purposes.

6. Tax period is the timeframe to determine the amount of tax payable to the state budget as regulated by tax laws.

7. Tax return is a document prescribed by the Minister of Finance, used by taxpayers to declare information to determine the payable tax amount.

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Thus, it can be seen that the purpose of a tax return is to serve as a document for submitting a taxpayer registration dossier and to declare information to determine the payable tax amount.

*Note: There are other cases where this tax return may also be required upon request.

What is the purpose of a tax return in Vietnam? What is the deadline for submitting the tax return for the third quarter of 2024? (Image from the Internet)

What is the deadline for submitting the tax return for the third quarter of 2024 in Vietnam?

According to Article 44 of the Law on Tax Administration 2019, the deadline for submitting tax returns is regulated as follows:

- The deadline for submitting tax returns for taxes declared monthly or quarterly is regulated as follows:

+ No later than the 20th day of the month following the month in which tax obligation arises, if filing and payment are made monthly;

+ No later than the last day of the first month of the quarter following the quarter in which tax obligation arises, if filing and payment are made quarterly.

- The deadline for submitting tax returns for taxes with an annual tax period is regulated as follows:

+ No later than the last day of the third month from the end of the calendar year or fiscal year for the annual tax finalization return; no later than the last day of the first month of the calendar year or fiscal year for the annual tax return;

+ No later than the last day of the fourth month from the end of the calendar year for the personal income tax finalization return of individuals directly settling taxes;

+ No later than December 15 of the preceding year for the presumptive tax return of business households, individuals paying presumptive taxes; in case of new business households, individuals, the deadline is 10 days from the start of the business.

- The deadline for submitting tax returns for taxes declared and paid each time tax obligation arises is no later than the 10th day from the date the tax obligation arises.

- The deadline for submitting tax returns in cases of termination of activities, termination of contracts, or reorganization of enterprises is no later than the 45th day from the date of the event.

- In cases where taxpayers file taxes via electronic transactions on the last day of the tax return submission deadline and the tax authority's electronic portal encounters issues, taxpayers shall submit tax returns and electronic tax payment documents on the next working day after the tax authority's electronic portal resumes operation.

Additionally, according to point b of Article 44 of the Law on Tax Administration 2019:

Deadline for Submitting Tax Returns

1. The deadline for submitting tax returns for taxes declared monthly or quarterly is regulated as follows:

a) No later than the 20th day of the month following the month in which the tax obligation arises, for monthly filings and payments;

b) No later than the last day of the first month of the quarter following the quarter in which the tax obligation arises, for quarterly filings and payments.

And Article 55 of the Law on Tax Administration 2019:

Deadline for Paying Taxes

1. If the taxpayer calculates the tax, the tax payment deadline is no later than the last day of the period for submitting tax returns. In cases of supplementary filings, the tax payment deadline is the deadline for the tax return of the tax period with mistakes or omissions.

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Thus, the deadline for submitting the tax return for the third quarter of 2024 is October 31, 2024.

In cases where the last day of the deadline falls on a weekend or public holiday, the deadline ends at the end of the next working day following the holiday as regulated in clause 5, Article 148 of the Civil Code 2015.

What is the penalty for making false declaration in a tax return in Vietnam?

The penalties for the act of making false or incomplete declaration on a tax return are regulated under clause 2, Article 12 of Decree 125/2020/ND-CP:

Penalties for false or incomplete Declarations in Tax Dossiers Not Resulting in Tax Payable Shortages or Unjustified Tax Reductions, Exemptions, or Refunds

1. A fine ranging from 500,000 dong to 1,500,000 dong shall apply for false or incomplete declarations in a tax dossier unrelated to determining the tax obligation, except as provided in clause 2 of this Article.

2. A fine ranging from 1,500,000 dong to 2,500,000 dong shall apply for false or incomplete declarations on a tax return, its appendices, unrelated to determining the tax obligation.

3. A fine ranging from 5,000,000 dong to 8,000,000 dong shall apply for one of the following acts:

a) false or incomplete declarations of declaration related to determining tax obligations in a tax dossier;

b) Acts specified in clause 3, Article 16; clause 7, Article 17 of this Decree.

4. Remedial Measures:

a) Mandatory re-declaration and submission of supplementary documents in a tax dossier regarding acts specified in clauses 1, 2 and point a, clause 3 of this Article;

b) Mandatory adjustment of losses, deductible-input VAT carried forward (if any) concerning acts specified in clause 3 of this Article.

Additionally, clause 5, Article 5 of Decree 125/2020/ND-CP states:

Principles for Handling Administrative Violations Regarding Taxes and Invoices

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5. For the same administrative violation regarding taxation, the penalty for organizations is twice the penalty for individuals, except for penalties under Articles 16, 17, and 18 of this Decree.

And clause 4, Article 7 of Decree 125/2020/ND-CP provides:

Forms of Penalty, Remedial Measures, and Principles for Applying Fines When Handling Administrative Violations Regarding Taxes and Invoices

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4. Principles for Applying Fines

a) The fines specified in Articles 10, 11, 12, 13, 14, 15, clauses 1, 2, Article 19, and Chapter III of this Decree are applicable to organizations.

For taxpayers who are households, business households, the same fines apply as for individuals.

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Thus, for the act of making false or incomplete declaration on a tax return, an organization may face administrative penalties ranging from 1,500,000 dong to 2,500,000 dong.

In case the violator is an individual, the penalty will be half of the aforementioned amount.

Additionally, the person who performs the false or incomplete declaration on a tax return must undertake remedial measures by re-declaring and submitting supplementary documents within the tax dossier.